Enter each of the eleven control plans from the control matrix solution here explaining how each plan will help to ensure the various control goals impacted by the plan. (Book Solution:
Effectiveness of Operations A: Timely deposit of checks
Effectiveness of Operations B: Comply with compensating balance arrangements with the depository bank
P-1Immediately endorse incoming checks:
Security of resources: A restrictive check endorsement, i.e., "deposit only to the account of Causeway Company," ensures security of the cash resource by preventing the check from being misappropriated.
P-2Write amount and check number on RA
Input accuracy: By writing the amount and check number on the RA, it will ensure that the amount being input is accurate.
P-3Use of turn-around document
Input validity: The use of turn-around documents ensures that the check is valid.
Input accuracy: The use of turn-around documents ensures that the information is accurate.
P-4Use of preformatted screens
Ensure Effectiveness of Operations A: Use of preformatted screens will assist in the keying in of the batch total, customer number, invoice number, amount, and check number, which will assist in ensuring that the checks are timely deposited as the system prints the deposit slip.
Ensure Effectiveness of Operations B: Use of preformatted screens will assist in ensuring that the company complies with the compensating balance arrangements with the depository bank by speeding up the input process, which will assist in getting the deposit slips printed more timely and deposits made.
Efficient Employment of Resources: Prevents errors because it simplifies data input and saves time allowing a user to input more data over a period of time
Input Accuracy: Prevents user from omitting any required data because the cursor moves to the next field on the screen. The data for fields that are automatically populated do not need to be manually entered. Incorrectly formatted fields are rejected.
P-5Online prompting
Ensure Effectiveness of Operations A: By keying in the information, it will ensure that the checks will be deposited timely as the deposit slips are printed by the system.
Ensure Effectiveness of Operations B: By keying in the information, it will ensure that the company is complying with the compensating balance arrangement with the depository bank by ensuring funds are deposited with the bank.
Efficient Employment of Resources: By asking questions and providing online guidance, this plan ensures a quicker data entry process and allows the user to input more data over a period of time.
Input Accuracy: The online guidance should reduce input errors.
P-6Automated Error Checks
Ensure Effectiveness of Operations A: By verifying/accepting the posting to the A/R master and logging onto the cash receipts event data, it will ensure that deposit slips are timely printed so the deposit with the bank can be timely made.
Ensure Effectiveness of Operations B: By verifying/accepting the posting to the A/R master and logging onto the cash receipts event data, it will ensure that deposits are made in order to comply with the compensating balance arrangement with the depository bank.
Efficient Employment of Resources: Ensures efficient employment of resources in that the computer is performing the check as opposed to personnel performing the error checks.
Input validity: Ensures the RA's input into the system are valid as the system is performing automated error checks. If the RA is not valid, then the system will denote that an error has occurred.
Input Accuracy: Ensures the information input into the system is accurate as the system is performing the error checks rather than having the possibility of human error.
Update accuracy: Ensures that the information input is accurate in the A/R master data as the error checks are performed automatically.
P-7Confirm Input
Input completeness: By advising the user that input has been accepted, the confirmation helps ensure input completeness.
P-8Manual batch comparison
Ensure security of resources: Ensures that the A/R master data is secure by verifying/accepting that the batch information is correct.
Input validity: By manually comparing the batch and verifying/accepting the input, it ensures that the information input is valid.
Input completeness: By manually comparing the batch and verifying/accepting the input, it ensures that all of the information has been input.
Input accuracy: By manually comparing the batch and verifying/accepting the input, it ensures that all of the information input into the system is accurate.
Update completeness: By manually comparing the batch and verifying/accepting the input, it ensures that the A/R master data is complete.
P-9Procedure for rejected input
Input completeness : Ensures that all of the information is complete before being entered into the system.
Input accuracy: Ensures that all of the information is accurate before being entered into the system.
P-10One-to-One Comparison
Ensure effectiveness of operations A: By comparing the deposit slip with the endorsed checks, it will ensure the deposits can be timely made.
Ensure effectiveness of operations B: By comparing the deposit slip with the endorsed checks, it will ensure that deposits can be timely made, thus complying with the compensating balance arrangement with the depository bank.
Ensure security of resources: By comparing the endorsed checks with the deposit slip, it ensures that all checks were deposited (secure).
Input validity: By comparing the endorsed checks with the deposit slip, it ensures they are valid.
Input completeness: By comparing the endorsed checks with the deposit slip, it ensures that all checks were deposited.
Input accuracy: By comparing the endorsed checks with the deposit slip, it ensures that the amount on the deposit slip is accurate.
P-11Run-to-Run Comparison
Input validity: By determining that updates to the A/R master data reflect valid invoices, we reduce the possibility of recording an invalid A/R.
Input completeness: By comparing RAs to the Summary of Customer Accounts Paid, we ensure that all events were input.
Input accuracy: By comparing the RAs to the Summary, we ensure that all events were accurately input.
Update completeness: By comparing the RAs to the Summary, we ensure that the A/R master data is complete.
Effectiveness of Operations A: Timely deposit of checks
Effectiveness of Operations B: Comply with compensating balance arrangements with the depository bank
P-1 Immediately endorse incoming checks:
P-2 Write amount and check number on RA
P-3 Use of turn-around document
P-4 Use of preformatted screens
P-5 Online prompting
P-6 Automated Error Checks
P-7 Confirm Input
P-8 Manual batch comparison
P-9 Procedure for rejected input
P-10 One-to-One Comparison
P-11 Run-to-Run Comparison